KBS Sells $480M Multifamily Portfolio
The national portfolio of garden and mid-rise apartments totaled more than two million rentable square feet.
CHICAGO—Holliday Fenoglio Fowler, LP recently completed the $480.65 million sale of 11 multi-housing communities totaling 3,039 units located in core markets in MN, IL, MO, TX, MD, NC and SC.
The Chicago-based HFF team marketed the offering on behalf of KBS Legacy Partners Apartment REIT, Inc., a public, non-traded real estate investment trust sponsored by KBS Capital Advisors LLC and affiliates of Legacy Partners Residential Realty LLC.
The portfolio of garden and mid-rise apartments totaled more than two million rentable square feet. Real Capital Analytics data indicate that KBS acquired the assets in 11 individual transactions between 2012 and 2014 at a combined cost of about $396 million.
“This eastern US portfolio was very well received by the market,” says Matthew Lawton, HFF’s executive managing director. He led the HFF investment advisory team representing the seller, which also included licensed local HFF teams in the respective markets. “The one-off and pool execution strategy enabled KBS Legacy to maximize net proceeds for their shareholders.”
As reported in GlobeSt.com, Newport Beach, CA-based KBS brought HFF on board in the summer of 2016. An HFF spokeswoman then told GlobeSt.com that the target price for the entire portfolio was about $500 million. CoStar Group reported that the offering was part of a broader plan by KBS Capital Markets Group to liquidate holdings in some of its REITs.
Eight different buyers purchased the properties in separate transactions between March 2017 and March 2018. HFF’s debt placement team also secured acquisition financing on behalf of the new owners for six of the communities.
The properties that sold to separate investors are: Watertower Apartments in Eden Prairie, MN; Legacy at Poplar Creek in Schaumburg, IL; Legacy at Martin’s Point in Lombard, IL; Legacy Grand at Concord in Concord, NC; Wesley Village in Charlotte, NC; Crescent Park in Greer, SC; and Millennium Apartment Homes in Greenville, SC.
Four additional properties sold in separate transactions to a single investor: Crystal Park at Waterford in Frederick, MD Residences at Waterstone in Pikesville, MD; Lofts at the Highlands in St. Louis; and Legacy at Valley Ranch in Irving, TXs.
The HFF team procured acquisition financing on behalf of the new owners for Watertower Apartments, Legacy at Martin’s Point, Crescent Park, Millennium Apartment Homes, Crystal Park at Waterford and Legacy at Valley Ranch.